Research On The Factors Of Affecting The Credit Constraints Of Farmers’ Specialized Cooperative

With the improvement of agricultural productivity and rural economic system reform, agricultural production edges towards specialization and commercialization. Concentrating the dispersed farmers to scale product is particularly important. On the base, the farmers’ specialized cooperative arises. Since the cooperative law issued in 2007, it develops rapidly. However, the lack of funding of cooperative has seriously restricted the further development. For this, government pays high attention. In 2009, "opinions on financial service of the farmers’ Specialized cooperative" introduced by China Banking Regulatory Commission puts forward to improve service forms, innovative financial products, expand the supply of credit. "No 1 " of 2014 points out that the cooperative preferential tax policies should be improved. "No 1 " of 2015 puts forward to speed up piloting the internal mutual funds cooperative, land and rural housing mortgage. However, in the face of rural financial institutions removing in great quantities, and new rural financial institutions failing to effectively act, cooperative financing is still difficult to solve. So, this article will explore the influence factors of credit constraints of the cooperative based on the investigation in Jiangning District, Nanjing.Firstly, this article summarizes theories of credit constraints, then analyze the present situation in China. Finally it uses the single variable probit model and demand identification of bivariate variable probit model to analyze the influence factors of credit constraints. Then, estimating contrast analysis makes the following results. Based on the single variable probit model, asset scale, demonstration level, work experience, whether registered brand, product sales, open degree, get government support, loan from financial institutions are positively correlated with supply of credit cooperative for financial institutions. Based on demand identification of bivariate variable probit model, demonstration level, work experience, product sales, open degree, get government support, loan from financial institutions are positively correlated with supply of credit cooperative for financial institutions. However, asset scale and registered brand are not significant.Based on the theoretical analysis, this paper believes solving credit constraints of cooperative should start from the following aspects:(1)Cooperative should encourage president, strengthen products, enhance credit, and improve the system especially financial system.(2)Financial institutions should strengthen innovation of credit products, to increase the supply of credit, accelerate the development of the new rural financial institutions, and construct the mechanism of interaction between bank and insurance to reduce credit risk.(3) Government department should increase financial support, continue to implement differentiated credit policy, establish a guarantee system and improve the legal system.